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On Thursday, Cantor Fitzgerald expressed a positive outlook for CIGNA Corporation (NYSE:CI) by raising the price target on the company’s stock to $365 from the previous target of $350. The firm maintained an Overweight rating on the shares, indicating a bullish stance on the health services provider’s future performance. According to InvestingPro data, CIGNA’s stock currently trades at $320.83, with analyst targets ranging from $323 to $405, suggesting potential upside. The company’s current valuation metrics indicate it may be undervalued compared to its Fair Value.
The adjustment in CIGNA’s price target followed a series of investor meetings on March 17 and March 18 with the company’s new Chief Operating Officer, Brian Evanko, and Senior Vice President of Investor Relations, Ralph Giacobbe. The meetings left Cantor Fitzgerald with a favorable impression of CIGNA’s strategic position and potential for growth. This optimism is supported by CIGNA’s strong financial health, earning a "GREAT" overall score from InvestingPro’s comprehensive analysis, which evaluates multiple financial metrics including profitability, growth, and cash flow.
Analysts at Cantor Fitzgerald highlighted several key factors contributing to their positive assessment. They noted the company’s advantageous positioning in the current political climate, which could impact the healthcare industry. Additionally, there is a growing confidence in the company’s ability to turn around its stop-loss business, which provides reimbursement to employers for claims exceeding a predetermined level. The company’s solid market position is reflected in its impressive revenue growth of 26.56% over the last twelve months, with total revenue reaching $247.12 billion.
Another area of potential growth for CIGNA, according to Cantor Fitzgerald, is Evernorth, the company’s health services platform. The platform is anticipated to have a long pipeline of growth opportunities. The overall messaging and questions during the investor meetings were reported to be positive, reinforcing the firm’s decision to raise the price target. InvestingPro analysis reveals additional positive indicators, including 14 key investment tips and a comprehensive Pro Research Report, available to subscribers seeking deeper insights into CIGNA’s investment potential.
The raised price target reflects Cantor Fitzgerald’s belief in CIGNA’s strategic initiatives and their expected contribution to the company’s financial performance. The Overweight rating suggests that the firm anticipates CIGNA’s stock to outperform the average return of the stocks the firm covers over the next 12 to 18 months.
CIGNA Corporation, as a global health service company, offers a range of health services through its various divisions and is closely watched by investors for its performance in the competitive healthcare market. The company has demonstrated its commitment to shareholder value by maintaining dividend payments for 44 consecutive years, with a current dividend yield of 1.88%.
In other recent news, Cigna Corporation announced significant leadership changes, appointing Brian Evanko as President and Chief Operating Officer and Ann Dennison as Executive Vice President and Chief Financial Officer. The company reaffirmed its financial outlook for 2025, projecting a consolidated adjusted income from operations of at least $29.50 per share. Meanwhile, Piper Sandler has reduced its price target for Cigna from $394 to $348 while maintaining an Overweight rating. This adjustment follows Cigna’s fourth-quarter earnings shortfall in 2024, primarily due to higher-than-expected costs in its Stop-Loss insurance. Cigna’s adjusted earnings per share for the quarter were reported at $6.64, missing the consensus estimate of $7.82. In another development, Bernstein maintained a Market Perform rating for Cigna with a price target of $323, expressing confidence in the capabilities of Brian Evanko. Additionally, the healthcare sector, including Cigna, experienced a downturn amid a Department of Justice investigation into Medicare billing practices at UnitedHealth Group (NYSE:UNH). However, there was a slight uptick in Cigna’s stock following supportive comments on social programs by President Trump.
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